Discussion in 'Fibromyalgia Main Forum' started by luv2float, Feb 5, 2011.

  1. luv2float

    luv2float New Member

    When I was told that back pay and ssdi payments were not taxable, I assumed that meant I didn't have to pay the IRS. SSA does not withhold them unless otherwise instructed by you.

    I'm shaking I'm so mad. The government giveth then taketh away!! It took me over 7 years to finally win my benefits in 2010. Well, imagine how much backpay that was, plus, my monthly checks. Now I have to claim that as income along with my husbands pay. The backdate was 2005.

    We are seeking a good CPA to help us through this. The IRS is willing in these situations to accept monthly payments. With as much as I think we might have to pay, it could take me years to pay them back.

    Just a warning for those they didn't know this. If anybody has dealt with this same situation, any advice would really be appreciated.

  2. TigerLilea

    TigerLilea Active Member

    Why don't you file your own income tax, rather than including your income along with your husbands?
    [This Message was Edited on 02/05/2011]
  3. Mikie

    Mikie Moderator

    It's worth it. There are ways to mitigate any taxes and a CPA will know which way makes the most sense.

    Love, Mikie
  4. Tommyhoney

    Tommyhoney New Member

    Hi there,
    I don't have any positive advice....sorry, I'm just in the same boat as you, and can't believe someone didn't advise us of this. I am so stressed, angry. Bad enough to struggle all of this time waiting, now this. Seems like we just can't win.
    Hope you can find a CPA to help. Seems like we're just going to suffer.
  5. kat211

    kat211 New Member

    The only advice I can give you is to find a firm that specializes in SSDI/SSI. by that I do not mean H&R block or any of the giant commercial places, I mean a local place that also has a tax attorney either on staff or on retainer. Make sure you verify their credentials as well. There are many fly by night tax set ups, especially this time of year. That is why I don't suggest H&R and the other places like that b/c they hire people who don't have any experience whatsoever and just set them up with a computer.

    I'm sorry I can't help more than that. My tax knowledge is very limited.
  6. kellygirl

    kellygirl Member

    I also discovered this.....can we file separately, though married?
  7. justjanelle

    justjanelle New Member

    Unfortunately, it was abolished in one of the tax code revisions 12 or 15 years ago. Maybe more.

    Too bad, because it was a great idea and very useful for people who had a sudden jump in income in a particular year.

    Best wishes,
  8. rosemarie

    rosemarie Member

    I learned that I had won my case and had qualified for SSDI in 2006, Valentine's day I get a call telling me that I now qualifiy for Social Security disability income, on my first try with out a lawyer. I asked the guy if he was kidding? I didn't believe him for a while. When I told my hubby he asked me to please take out some thing for tax's and I started out with 5% and am at 10%. I talked to my cousin who does tax's and he advised me to take out at least 10-15 % of what I bring home on SSDI so that is what I do. I would rather pay tax's now than pay them all at once. If you are married and hubby is working then it is nessary to pay tax's or at least it si in my house hold. MY mother who is 83 and has my daughter and her family live with her does not make enough to pay tax's because she does not make enough to do so. MY daughter and SIL pay their own tax's and mom's not included .
    I do what works best for my husband and I. I hope that you can find a way that works best for you. WE have had hard times adn I really wanted to not pay tax's a couple of years ago but it is a good thing I do because we would have owed far more than we do already,.
    HOpe it all works out for you.